Agarwala, J. - (1.) This is an application under Section 66 (2), Income-tax Act.
(2.) The applicant was required to produce a rough cashbook in the matter of the assessment of tax for the year 1945-46. He produced some account book which was not accepted by the Income-tax Officer as genuine. Consequently the assessment against the applicant was made to the best of the judgment of the Income-tax Officer under Section 23(4) of the Act. The Income-tax Officer then proceeded to deal with the applicant's application for the registration of his firm for that year. He refused to register the firm on the ground that the rough cashbook produced was not a genuine record of the assessee's business transaction' and the non-production of the original account books resulted in the assessment being made under Section 23(4). Against this order there was an appeal to the Appellate Assistant Commissioner which was dismissed and then a second appeal to the Appellate Tribunal and then an application to the Appellate Tribunal under Section 66(1) were made which were dismissed.
(3.) In this application two points have been urged before us. It has been contended that no application for the registration of the firm was made, but an application for renewal of registration was made. It was pointed out that the firm had already in the past been registered, and that as such the Income-tax Officer had no power under Section 23(4), Income-tax Act to refuse to renew the registration of the firm. Secondly, that the Income-tax Officer has not in reality exercised the discretion vested in him under Section 23(4) because in refusing to register the renewal of the firm, he has simply referred to the very grounds on which the assessment was made under Section 23(4). We consider that there is no force in any of these contentions.;